TOM GILL / LONDON

Bids are due in this week for the first air services to be subsidised centrally by the Swedish government. Swedish domestic routes are among a growing number of services that are classified under European Union (EU) public service obligation (PSO) rules.

The tender involves 10 thin routes - from Stockholm Arlanda to Arvidsjaur, Gallivare, Hagfors, Hemavan, Lyckele, Strouman, Sveg, Torsby and Vilhemina, and from Pajala to Lulea. They account for 150,000 passengers annually - 1% of Sweden's domestic traffic. The services, some of which were previously subsidised by local municipalities, are due to start on 27 October for three years. Under EU-approved rules, the carrier that offers the cheapest deal while delivering minimum service standards set by EU member states will win.

The introduction of PSO status often leads to the use of larger aircraft on a particular route, says Johan Holmer, who is responsible for the PSO project at the Swedish civil aviation administration. "Capacity is limited with today's available seats, especially for leisure travellers. On some routes we also request bigger aircraft to increase transport quality," Holmer says.

Pajala Airport, in northern Sweden, is served by an eight-seat Piper Chieftain, but it expects an aircraft with at least 15 seats to be employed in the future.

All but two of the 10 routes have been operated by SkyWays, which is 30% owned by national flag carrier Scandinavian Airlines. The more transparent bidding process is likely to attract a wider variety of carriers, says Pajala Airport.

"The number of PSO routes is growing, partly because countries are realising they can use this system," says Marc Skreikes, who is responsible for the scheme at the European Commission. France, Germany, Italy and the UK already have PSO routes and Skreikes says around 75 routes across the EU have PSO status. Some countries, such as Spain, subsidise flights to their islands under separate EU social-aid rules.

Source: Flight International